Eskom wants SA government to debt swap as it’s the best and easiest decision

Eskom has again suggested another option to rescue the state-owned power utility from financial collapse, apart from the decision of splitting it into three separate organizations.

According to Phakamani Hadebe, Eskom CEO, the best way the authorities can commit in order to reform the company is to assume part of its R419bn debt.

“The debt swap is easy for the government. If the government has to first go borrow money and give it to us, that takes time” Hadebe said on Thursday.

That option was also voiced in December but the SA government, including president Ramaphosa and Finance Minister Tito Mboweni, has not favored it assuming that even R100bn — the amount Eskom asked for — would not solve any internal problems the utility has.